Kenyans devastated as more companies plan to lay off even more staff

Top CEO's are likely to send home hundreds of staff soon...

The recent lay-off of workers by various companies in the country could even get worse if a study by the Trends and Insights For Africa (TIFA) is anything to go by.

According to the report commissioned by the Kenya Private Sector Alliance (Kepsa), at least a fifth of companies in Nairobi could axe staff in the next six months due to unfavourable business climate coupled with political uncertainty ahead of the general elections.

Of the 90 CEO’s interviewed by TIFA, only 30 per cent expect to hire more people in the coming months with 18 per cent predicting staff lay-offs.

“Only 30 per cent of the CEO's surveyed expect to hire more people in the next six months, 52 per cent said their hiring position would remain unchanged while 18 per cent foresee staff cuts,” said KEPSA CEO Carole Kariuki.

The TIFA Research added that more staff downsizing could be experienced in the transport and banking sectors arising from rapid growth in IT and the completion of the standard gauge railway which is expected to start operating in June.

Interest capping has had a negative impact on the banking industry with several banks, led by Equity Group, sending home over 1,000 employees in a cost-cutting drive.

The energy and ICT sectors CEO’s remain optimistic that things will improve in the next six months.

The tourism industry, which has experienced tough times during the past election years, got a 50 per cent rating on the back of increased domestic tourism and international conferences.

Despite the harsh business environment, Ms. Kariuki said that the private sector remains attractive to new investments with foreign direct investments expected to flow in the country.


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